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October 12th, 2021 | 13:32 CEST

RWE, Desert Gold, Deutsche Bank: Opportunities from conservative to speculative

  • Gold
Photo credits: pixabay.com

How to invest when prices are galloping and disruptive fires are increasing? Many investors will opt for blue chips. Indeed, large corporations with steady and stable cash flows offer an opportunity, especially in times of inflation. But which stocks are specifically suitable? Using three shares as examples, we explain how investments can succeed today.

time to read: 3 minutes | Author: Nico Popp
ISIN: RWE AG INH O.N. | DE0007037129 , DESERT GOLD VENTURES | CA25039N4084 , DEUTSCHE BANK AG NA O.N. | DE0005140008

Table of contents:


    RWE: Energy will still be needed in the future

    If you prefer a conservative approach, you can take a closer look at the RWE share. Over the years, the energy supplier has given itself a new image and is investing heavily in renewable energy. In the first half of the year, sales increased by a whopping 25.4%, while profits even rose by more than 40%. Nevertheless, the Company is in a difficult situation. Climate neutrality is approaching, and legislators are doing everything they can to achieve this goal. Since RWE still generates around 60% of its energy from fossil fuels, trading emission rights could become increasingly challenging and expensive for the Company in the long term.

    On the other hand, Germany, as an industrial location, is dependent on electricity. It is hard to imagine that the new German government will create a framework that will prevent RWE from making an orderly transition to renewable energy sources. The Company is currently investing heavily in wind farms, for example, in the North Sea. The share has lost around 8.7% in the past year. However, it is coming into an interesting area between EUR 28 and EUR 30, where the value could find support. The dividend yield of 2.8% could be another argument in favor of the stock.

    Desert Gold: Anticyclical opportunity for the brave

    Unlike large blue chips, stocks like Desert Gold are much more speculative. Conversely, this also means greater opportunities, but investors need to look at the specific story behind the Company. Desert Gold operates in Mali and has an area of 410 sq km on the border with Senegal. In the past, gold grades, such as 16.03 g/t gold over 7m, have caused a stir. Further drilling is planned for this fall, with a new resource estimate due in 2022.

    The gold in the ground at Desert Gold's properties is valued at a whopping discount as a classic gold developer. Usually, good drill results or company announcements that make production more likely provide short steep rises. That is what happened between April and July 2020, when the stock tripled. However, the past few months have seen more of a consolidation. As the Company has continued to operate and there have been no apparent setbacks, Desert Gold could be a countercyclical opportunity for speculative investors. However, it is advisable to choose smaller position sizes compared to standard stocks. With a market capitalization in the low double digits, Desert Gold must be considered opportunity-oriented.

    Deutsche Bank: What can the digital dinosaur do?

    Investments in financial stocks could also offer opportunities - at least one might think so. Why? The industry has been adopting a more digital approach for years, and the prospect of slightly rising interest rates could give banks more leeway to boost traditional lending business again. But what does the reality look like? Stocks like Deutsche Bank are always good for short flashes in the pan, but they can also go down again. After all, the Deutsche Bank share broke out to the upside in the last few trading days and reached a new three-month high. Thus, at least the annual high of EUR 12.50 should become realistic again. How things can continue in the long term, however, remains to be seen. The major German banks may always pretend to be modern and innovative, but in practice, the wind from times long past still blows in the towers in Frankfurt.


    Financial stocks, such as Deutsche Bank, have catch-up potential from a very long-term perspective, but it is by no means clear that banks will return to their former glory. Things look better for utilities - here, inflation and the industry's energy needs speak for a stable business. Desert Gold is relatively unaffected by external influences: The value should gain momentum if the next drilling hits the mark.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

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    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



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